Trade Cases
Mexico Avoids Tariff by Agreeing to Monitor Exports
Written by Tim Triplett
September 1, 2020
In response to U.S. complaints of recent surges, Mexico has agreed to strictly monitor exports of standard pipe, mechanical tubing and semifinished products through June 1, 2021. In exchange, the U.S. will maintain Mexico’s exemption from the Section 232 national security tariffs, said U.S. Trade Representative Robert Lighthizer in a statement on Monday. Section 232 imposes a 25 percent duty on imports of finished and semifinished steels from most other nations.
As a result of consultations to analyze recent volumes of imports of the three steel products, the U.S. will maintain Mexico’s tariff-free treatment, said Mexico’s Secretariat of the Economy in a statement on Monday. For its part, Mexico will establish an export monitoring regime for these products until next June. Both countries will consult in December to assess the trade flow of these products in light of current market conditions
Lighthizer praised the Mexican government for their cooperation. “While the COVID-19 pandemic has challenged both of our countries in unprecedented ways, it has also underscored the importance of the strong economic partnership between the United States and Mexico and the need for close coordination to address common challenges. Our successful consultations on steel prove it is possible for us to work together to find creative solutions that serve the interests of workers and businesses in both countries.”
(Editor’s note: See Leibowitz on Trade for further commentary on this subject.)
Tim Triplett
Read more from Tim TriplettLatest in Trade Cases
Global steel forum sets 2026 framework deadline as US ups pressure on excess capacity
Global steelmakers sounded the alarm Friday over the deepening excess steelmaking capacity crisis. Ministers at the Global Forum on Steel Excess Capacity (GFSEC) in Gqeberha, South Africa, pledged to...
CRU: China’s indirect steel exports find new destination markets
The boom in China’s direct steel exports has not stopped this year, even with a rise in protectionist measures globally. The increase is driven by...
U.S. Steel sues Algoma over iron pellet shipments
U.S. Steel is suing Algoma over the Canadian flat-rolled producer's rejection of iron pellet shipments, arguing it has breached its contract.
US and Canada expect positive outcomes from tariff negotiations
Canadian Prime Minister Mark Carney and US President Donald Trump told reporters at the White House on Tuesday that they’ll be formulating a trade deal that works for both nations.
Leibowitz: When the shutdown should end
There is no doubt that the current government shutdown reflects the vast divisions between the extremes of American politics, society, and even geography. Almost all Americans agree that government is necessary, but voters disagree...